The present disclosure is directed toward a reverse auction program and, more specifically, to a program that provides print job vendors with computed costs and returns for basing bid amounts.
Customers solicit vendors to render print output according to certain print job specifications. For smaller jobs, a customer may approach a select vendor (or supplier) with the particular specifications. However, multiple vendors may approach the customer to compete for rendering more complex or higher quantity jobs. A “reverse auction model” is a platform for soliciting bids from multiple vendors. A program adapted to perform the reverse approach is described in U.S. Application 2009/0281878, filed May 7, 2008. The reverse auction model creates a more competitive environment for vendors. Multiple vendors receive the job specifications and can submit bids dynamically through a network. However, the reverse auction model is discretionary as it invites only a select group of vendors to bid on a given print job. The application computes a preview price for selecting the group. The preview price is a qualifier based on a contractual rate (i.e., a vendor-supplied source rate), submitted in advance, and vendor capability, based on customer-entered data. More specifically, the program selects the group of vendors capable of rendering the print job on select press types specified by the customer.
The reverse auction model generally determines which vendors are able to provide the customer's print needs. The program assists vendors with submitting bids at appropriate rates by allowing the vendors to analyze the prices associated with the job specification beforehand.
One aspect of the reverse auction model is that it relieves customers of tasks associated with negotiating a contractual work agreement with a vendor. A document advisor is charged with the task of providing the customer's needs at a lowest possible cost. Accordingly, the reverse approach model or program aids the document advisor in narrowing the group of vendors for soliciting bids. One disadvantage associated with the program, however, includes a risk incurred by the vendors; there may be a reduced enterprise-wide awareness of vendors' expenditure on rendering the print job when a host of different (e.g., international) vendors are contracted. There is a risk that some vendors may not be cost competitive, and other vendors may fail to meet the demand.
While the document advisor utilizes the program for obtaining a lowest possible bid for the customer, there exists a need for the program to calculate a lowest bid amount that also maximizes a highest profitable return for the vendor. More specifically, a program is needed that benefits both the customer and the vendor.